Undeniably, blockchain technology and cryptocurrency are one of the fastest growing tech-based industries in the world. The multi-billion-dollar industry has revolutionized trading, investments, and business throughout the past decade and has since been considered as one of the biggest technological advancement of the 21st century.
However, the blockchain industry remains unregulated. Concerns regarding security have bugged the industry ever since, and it has yet to overcome this obstacle.
An article published by the MIT Technology Review, a magazine fully owned by the United States Massachusetts Institute of Technology (MIT), argues that the security-touted blockchain tech is still vulnerable to hacks and other attacks.
In the article, the MIT Technology Review stressed that the blockchain technology including cryptocurrencies is a complex economic system that is overly dependent on unpredictable human behavior. With this, the review pointed out that numerous security breaches and cyber attacks have been increasingly emerging in cryptocurrency and smart contract platforms. The review cited several incidents including the recent double spending vulnerability that was found on a significant U.S. crypto exchange Coinbase on Jan. 7.
The article from the MIT Technology Review has further enumerated some conditions that make the technology vulnerable to a security breach. They said that both unintentional bugs in the system and human factor are two of what makes the technology susceptible to attack. The magazine wrote:
“In short, while blockchain technology has been long touted for its security, under certain conditions it can be quite vulnerable. Sometimes shoddy execution can be blamed, or unintentional software bugs. Other times it’s more of a gray area — the complicated result of interactions between the code, the economics of the blockchain and human greed.”
There are also some incidents that security-touted technology becomes problematic aside from hacking. Recently, blockchain wallet Quadriga is slapped with a $200 million problem after their CEO and founder died without turning over intellectual resources like encryption data and passwords. (Read: $200 Millon Problem: Cryptocurrency CEO took digital assets to his grave)
The Review published by MIT also cited numerous bounties – programs and rewards provided by blockchain and crypto companies to incentivize white hat hackers to report specific systemic flaw on a given platform.
According to TheNextWeb, white hat hackers earned a total of $878,000 by reporting crypto bugs and flaws in 2018 alone. Just recently, Coinbase handed out $30,000 reward, the largest bounty ever given, to HeckerOne for reporting a critical bug on its system.
Previously the same publication has argued that the blockchain technology will prosper in 2019 after considering it a disappointment of 2018. /apr